Gold Price Forecast: XAUUSD bias still seems tilted in favour of bearish traders

Gold Price extended its sideways consolidative move for the third successive day on Monday. As FXStreet’s Haresh Menghani notes, XAUUSD seems vulnerable to slide further.

Friday’s peak at $1,752 to act as immediate strong resistance

“Sustained weakness below the trading range support, around the $1,733 region, will reaffirm the near-term bearish outlook and make gold price vulnerable. The downward trajectory could then drag the XAUUSD towards the next relevant support near the $1,721 area, en-route the $1,700 round figure and August 2020 low, around the $1,687-$1.686 region.”

“Friday’s peak, near the $1,752 zone, now seems to act as immediate strong resistance. Sustained strength beyond might trigger a short-covering move and lift gold price further towards the $1,767-$1,770 strong horizontal support breakpoint. Some follow-through buying would suggest that the XAUUSD has formed a near-term base and allow bulls to aim back to reclaim the $1,800 mark.”